GOLD: Shandong Gold ups offer for Cardinal

GHANA - Australia-based Cardinal Resources announced on Wednesday it has received an improved takeover offer from China’s Shandong Gold. The new proposal from Shandong Gold follows a recent takeover bid launched by Russia’s Nordgold, whose chairman is currently Cardinal’s largest shareholder. The Russian miner came into the fold last week with an on-market offer of A$0.66 cash per share. Pursuant to the revised off-market takeover proposal, Shandong Gold would acquire all of Cardinal’s shares that it does not presently own at a cash price of A$0.70 per share, up from the previous offer price of A$0.60 per share. Cardinal says the Shandong Gold offer is now being “considered in detail by the board” together with the special committee and its financial and legal advisers. The company also notes that the offer remains subject to a number of conditions, including regulatory approvals in Australia (FIRB - Foreign Investment Review Board) and China. Cardinal is mainly focused on the development of its Namdini gold project in Ghana. Earlier this week, the Namdini mining licence was officially ratified by the government for an initial period of 15 years. Shares of Cardinal Resources rose 0.7% on the TSX by 3:30 p.m. EDT, after reaching a 52-week high of $0.72 per share earlier in the session. The company has a market capitalization of $355.1 million.